Omaxe to float IPO
New Delhi: Real estate company Omaxe has received SEBI's approval for its Initial Public Offer (IPO), expected to raise up to Rs1,400 crore from the capital market. Omaxe had filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December last year.

Omaxe proposes to enter the capital market with a public issue of up to 1.77 crore equity shares of Rs10 each through 100 per cent book-building process. The company is planning to raise about Rs1,100-1,400 crore from IPO.

The issue would constitute 11.20 per cent of the fully diluted post-issue paid-up capital of the company, if the green shoe option is exercised and 10.30 per cent, if the option is not exercised. Of the total equity float, up to 1.75 crore equity shares are for the public, while the balance 2.96 lakh shares are reserved for eligible employees of the company. Additionally, there would be a green shoe option of 17.5 lakh equity shares. The proceeds of the issue would be utilised for payments related to land, repayment of loan and to fund the development and construction costs of some of the company's projects.
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Central Bank of India files red herring prospectus for IPO
Coimbatore: Central Bank of India has filed the draft red herring prospectus with SEBI for its proposed public issue.

The bank is offering through the issue 80,000,000 equity shares of Rs10 each through the book building route. This includes 4,000,000 shares reserved for the eligible employees.

Central Bank of India has stated in the draft prospectus that the RBI required the banks to maintain a minimum CRAR (capital to risk-weighted assets ratio) of 9 per cent, at least 50 per cent of which should consist of tier-I capital. As on March 31, 2007, the total capital adequacy ratio of the bank was 10.40 per cent and its tier-I capital adequacy ratio was 6.32 per cent compared with 11.03 per cent and 7.19 per cent respectively as on March 31, 2006.

Central Bank says it needs funds to augment its capital base to meet the future capital requirements arising out of the implementation of the Basel II standards and the growth in its assets, essentially its loan and investment portfolio, due to the growth of the country's economy and for other general corporate purposes.
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FIIs' pre-IPO investments in real estate to get FDI status
Mumbai: The government proposes to treat the investments by foreign institutional investors in pre initial public offers (IPOs) of real estate companies as foreign direct investment (FDI).

The government has also said FII investments in the pre-IPO allotment of real estate companies will have a lock-in period of three years, in line with the FDI norms. This means the investments cannot be withdrawn before three years. The lock-in period of three years is currently applicable to FDI in real estate.

The changes will be notified by the Securities Exchange Board of India through changes in its regulations for the foreign institutional investors.

Overseas funds are seen to be contributing to an asset bubble in the real estate space, by pushing the prices up. The government recently clamped down on the use of external commercial borrowings for the real estate sector for integrated townships.

The government had said that it intended to slow down the flow of foreign debt into the real estate sector through its recent curbs on external commercial borrowings (ECBs).
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